Inheriting a home can be a blessing or a curse. Sometimes it’s a wonderful gift and sometimes it can be an unfortunate inconvenience. Sometimes inheritors will sell their own properties and move into the home, other times the home will be emptied with an estate sale and then sold. Here are some great resources and information on what to do if you inherit a house or property.
If you’ve inherited a home and want to consider selling it, you need to be able to figure out what you can afford to sell the home for. You also need to be able to calculate what selling the home could cost you in taxes. Be sure to report sale proceeds to the IRS. It will be documented as taxable income if you sell an inherited property. Even if you don’t owe any taxes on the home sale, it’s still a good idea to report the event. Be sure to do the research on inheritance tax and estate tax, because it can differ from state to state.
If you want to proceed with selling the home, take time to clear out any personal belongings. This can be time consuming and emotionally hard. While you may want to keep everything, you may not be able to. Hiring an appraiser to look at family heirlooms or jewelry may be a good idea before you decide to sell everything in an estate sale. Be sure to get cherished possessions to heirs, and other family members, as noted in any wills.
Holding a yard sale or an estate sale can be a great way to get rid of things. Selling a home as is, or already furnished, can be a hard sell to complete. Homes show better on the market when they’re empty or staged, but not filled with the previous tenants’ belongings.
Do your research on probate. Most inherited homes have to go through probate before you can sell them. Determine or decide who in the family holds the legal responsibility to handle the transaction of sale.
Some family members decide to sell properties of their own and move into inherited homes. There are still legal loopholes to close before this can be done. Other family members may have a right to the home as well, so it’s important to follow all loose ends before you start selling property of your own.
Some may choose to rent the home out and use it as a small source of income. Either way, it’s your choice. If you’re going to sell the home, it will be beneficial to invest in a real estate agent. They may know how to hook you up with a great estate sale business, and all the steps you’ll need to complete tax-wise. In addition to being a great resource in the actual sale of the property, your real estate agent can help make the process much easier.